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Substitute the above demand functions into the utility function to get what is known as the indirect utility function, which gives utility as
Substitute the above demand functions into the utility function to get what is known as the " indirect " utility function, which gives utility as a function of income, prices, and amenities. (b) Using your answer from (a), how does utility change when income y rises? When does the real-estate price p rise? How does utility change when amenities increase?
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
